This letter clarifies the Board's policy with regard to
noncitizens as it pertains to the hiring of Federal Reserve
examiners1, in accordance with the Board's revised Rules Regarding
Equal Opportunity.2 As you know, for some time the Division of
Banking Supervision and Regulation, as a matter of policy, had
extended a flat prohibition on the hiring of noncitizens as Federal
Reserve examiners at Reserve Banks because of the special nature of
the supervisory function, the need to ensure confidentiality of
information, and the delegated nature of the function. The Board's
current Rule with regard to examiners provides certain limited
exceptions to the requirement for United States citizenship.
Conditions under which individuals who are not citizens of the
United States may be considered for employment as Federal Reserve
examiners are outlined below.

Generally speaking, Reserve Banks have been given
greater latitude to hire as examiners noncitizens who are intending
U.S. citizenship. The rules have been revised to provide some
additional flexibility for the hiring of noncitizens, while
maintaining important safeguards to ensure that information
integrity and data security are maintained as they relate to U.S.
banking organizations and related entities.
The Board considers the examiner position to be a "sensitive
position" as defined in 12 C.F.R. Section 268.304(a)(4).

For those noncitizen examiner candidates that a
Reserve Bank wishes the Board to consider and approve, the Reserve
Bank should ensure the following:

The individual is an immigrant, i.e., holds a permanent
resident visa/Green Card, and is legally qualified to
become a U.S. citizen under the U.S. immigration laws;

The individual states in writing his/her intention to
become a U.S. citizen;

The individual has taken whatever steps he or she is
permitted to take under applicable law to become a U.S.
citizen within the timeframe prescribed by law; and

The individual has agreed in writing that his/her
statement of intention to become a U.S. citizen is a
condition of employment for that position such that if
he/she receives examiner credentials and later fails to
take all the steps necessary to become a U.S. citizen
within the timeframe prescribed by law, his/her
employment with the Supervision and Regulation
Department at the Reserve Bank shall cease.

To ensure consistency and compliance with the
conditions outlined under this policy, Reserve Banks may be asked to
periodically report to the Board the citizenship status of those
noncitizen employees who have been approved by the Board as
examiners.

The Board's Legal Division has requested that I
remind you that it is generally illegal for a Reserve Bank to
discriminate against noncitizens on the basis of national origin.
On the other hand, it is illegal to employ noncitizens who are not
authorized to work at a Reserve Bank if they do not possess the
proper visa. However, under federal law and the Board's Rules, it
is permissible to require that a Federal Reserve examiner be a U.S.
citizen, or hold a permanent residence visa/Green Card and be an
intending citizen. Federal law further states that a Reserve Bank
may prefer to hire or recruit as an examiner an individual who is a
U.S. citizen over another individual who is a noncitizen (immigrant
or nonimmigrant) if the two individuals are equally qualified.3

A copy of the Board's Rule (Section 268.304,
Employment of Noncitizens) is attached for your information. Should
you have any questions regarding the application of this policy
please contact Cynthia Rotruck at (202) 452-3633.

Richard Spillenkothen
Director

ATTACHMENT MAY BE OBTAINED FROM FEDERAL RESERVE BANK

Footnotes

1. The term "examiner" is defined to mean any employee appointed by the Board as an examiner or assistant examiner. Return to text